ADB loan of $59 million for hydropower in Himachal

Shimla: Himachal Pradesh will soon get another multimillion dollar loan from the Asian Development Bank (ADB) for the construction of four hydropower generating plants in Himachal Pradesh.

"ADB would soon release the second instalment of $59.1 million under the Himachal Pradesh Clean Energy Development Investment Programme. An agreement to this regard was signed in New Delhi Friday," Himachal Pradesh Power Corporation (HPPCL) Managing Director Tarun Kapoor said.

He said the second tranche was part of the ADB’s sanctioned loan of $800 million. Earlier, the lender bank had sanctioned $150 million to HPPCL.

The projects being financed are Sawara-Kuddu (111 MW) in Shimla district, Kashang (195 MW) and Shongtong-Karchham (402 MW) in Kinnaur district and Sainj (100 MW) in Kullu district.

The total estimated cost of these projects is $1.5 billion. The ADB is releasing the loan in the form of a multi-tranche financing facility, which means the instalment is released on the basis of progress of the projects.

The loan has a 25-year repayment period.

Besides these four projects, HPPCL has three other mega projects in hand, including the Rs.27-billion (Rs.2,700-crore) Renuka Dam project in Sirmaur district that will provide drinking water to Delhi and generate 40 MW power for the hill state.